This top toy maker continues to pay outstanding dividends, and toys rarely are out of favor. Mattel Inc. (NYSE: MAT) designs, manufactures and markets a range of toy products worldwide. It offers dolls and accessories, vehicles and play sets, and games and puzzles under brands that include Barbie, Monster High, Disney Classics, Ever After High, Little Mommy, Polly Pocket, Hot Wheels, Matchbox, Toy Story, Max Steel, WWE Wrestling and DC Comics.
The company also provides its products under the Fisher-Price brands, including Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, Disney Jake, the Never Land Pirates and Power Wheels. In addition, it offers its products under the American Girl brands, as well as construction and arts and crafts brands, such as MEGA BLOKS, RoseArt and Board Dudes. It also publishes the American Girl magazine.
UBS noted in a recent research report:
Mattel’s Jurassic license starts in July of 2017, with initial product (action figures, playsets, vehicles, games, plush, role-play, preschool etc.) expected to hit shelves in early 2018. Jurassic Park did ~$100M in net sales last year for Hasbro.
Investors receive a 5.0% dividend. The UBS price target is $36, and the consensus target is $35.64. Shares closed Friday at $30.46.
Royal Dutch Shell
This company has survived the plunge in oil pricing plunge as good as or better than any other major integrated stock. Royal Dutch Shell PLC (NYSE: RDS-A) operates as an independent oil and gas company worldwide through its Upstream and Downstream segments. The company explores for and extracts crude oil, natural gas and natural gas liquids.
Royal Dutch Shell also converts natural gas to liquids to provide fuels and other products; markets and trades crude oil and natural gas; transports oil; liquefies and transports gas; extracts bitumen from mined oil sands and converts it to synthetic crude oil; and generates electricity from wind energy.
In addition, the company engages in the conversion of crude oil into a range of refined products, including gasoline, diesel, heating oil, aviation fuel, marine fuel, liquefied natural gas for transport, lubricants, bitumen and sulphur; production and sale of petrochemicals for industrial customers; refining; trading and supply; pipelines and marketing; and alternative energy businesses.
The company generated 3.83 billion cubic feet per day of natural gas in the second quarter of this year from its integrated gas operations and another 6.40 billion cubic feet per day from its upstream operations. It produced solid third-quarter results that exceeded Merrill Lynch expectations. The firm noted in a recent research report:
We increase our estimates and price objective as a result of results – remaining above consensus. We reiterate our Buy rating and continue to see Royal Dutch Shell as our preferred Integrated Oil Supermajor.
Investors receive a 6.36 % dividend. The Merrill Lynch price target is $58. No consensus price target was posted. Shares closed Friday at $50.28.
Though still down over 40% from the highs posted last year, the stock has rallied huge off the lows printed in May. Seagate Technology PLC (NASDAQ: STX) designs, manufactures and sells electronic data storage products in the Asia-Pacific, the Americas and EMEA countries.
The company provides hard disk drives, solid state hybrid drives, solid state drives, PCIe cards and serial advanced technology architecture controllers that are designed for enterprise servers and storage systems in mission critical and nearline applications, as well as for client compute applications comprising desktop and mobile computing.
One of Wall Street’s biggest activist investors, ValueAct Capital, recently became one of Seagate’s largest shareholders with a new 9.5 million share stake. ValueAct established its new position via a secondary block trade, and will gain a seat at board meetings as an observer. ValueAct Capital generally invests in out-of-favor companies and works with them to make changes and boost long-term shareholder value.
Investors receive a 7.64% dividend, which many thought would be cut, but it has been held steady. Jefferies has a $38 price objective. The consensus target of $34.10 is below Friday’s close at $33.00.
While these out-of-favor stocks may still remain volatile, buying these top companies at deep discounts may end up being one of the best trades for the rest of 2016 and 2017.